Gold falls from record

Gold fell in London on speculation that a record reached yesterday was overdone and as a technical chart used by some investors signaled they should sell the metal. Platinum, silver and palladium also declined.

Gold had its best start to a year since 1975, reaching all-time ihghs on January 8 and 9, as a jump in oil prices spurred investors to seek a hedge against accelerating inflation. That took gold's 14-day relative strength index to 72 yesterday. A reading above 70 signals prices may decline.

"There is no more mileage in gold," Bernard Sin, chief gold trader at MKS Finance, one of Switzerland's four precious metal refiners, said on Thursday.

"We need a pullback before we can inch forward again."

Gold for immediate delivery fell $1.77, or 0.2 per cent, to $877.04 an ounce as of 9:52 am in London. The metal reached a record $891.70 yesterday, extending a seven-year winning streak. Silver for immediate delivery fell 10 cents, or 0.7 per cent, to $15.59 an ounce.

Platinum for immediate delivery in London declined $7.75, or 0.5 per cent, to $1,546.25 an ounce. It reached a record $1,563.25 yesterday. Palladium fell 75 cents, or 0.2 per cent, to $374.75.